LTAT.05.015 Business Process Mining
Transcript of LTAT.05.015 Business Process Mining
LTAT.05.015
Business Process Mining
Lecture 2: Process Performance Measurement and Dashboards
Marlon Dumas
Professor of Information Systems @ University of Tartu
Co-founder @ Apromore
Course Outline
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Introduction
Process performance measurement & dashboards
Process mining
• Automated process discovery
• Conformance checking
• Performance mining
• Variant analysis
Simulation and “what-if” process mining
Data extraction & preparation for process mining
Predictive process monitoring
Business case analysis & project management for process mining
Trends: prescriptive monitoring, causal process mining, robotic process mining
Process performance
If you had to choose between two services, you would typically choose the one that is:
•Faster
•Cheaper
•Better
Process performance
Process performance
Time
CostQuality
Processing time
Waiting time
Cycle time
Time measures
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Time taken by
value-adding
activities
Time between start
and completion of a
process instance
Time taken by non-
value-adding
activities
Processing Time
Cycle Time
Cycle Time
Efficiency (CTE)
Cycle time efficiency
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Processing cost
Cost of waste
Per-Instance
Cost
Cost measures
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Cost of value-
adding activities Cost of a process
instance
Cost of non-value-
adding activities
Material cost
• Cost of tangible or intangible resources used per process instance
Resource cost
• Cost of person-hours employed per process instance
Typical components of cost
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Time spent per
resource on process
work
Time available
per resource for
process work
Resource utilization
Resource utilization
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Resource utilization = 60%
on average resources are idle 40% of their
allocated time
Resource utilization Waiting
time
Resource utilization vs. waiting time
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Typically, when resource utilization > 90%
Waiting time increases steeply
Product quality
• Defect rate
Delivery quality
• On-time delivery rate
• Cycle time variance
Customer satisfaction
• Customer feedback score
• Net Promoter Score (NPS)
Quality
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•Measuring demand (for the process)• Case arrival rate (written λ): number of new cases created per time unit
• An alternative measure is the case inter-arrival time (the average time between two new consecutive cases)
• Example: number of new purchase orders created per day
•Measuring workload• Work-in-Process: (average) number of cases that are active, meaning that
have started but not completed
• Example: number of purchase orders that have been received and not yet fulfilled
Other process performance measures
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•Little’s law is a fundamental law of systems that involve jobs waiting for resources (like business processes).
• It relates demand, workload and cycle time
WIP = ·CT
•WIP = work in process
• = arrival rate (number of new cases per time unit)
•CT = cycle time
•Example: if we receive 10 customer claims per hour and it takes us 2 hours to solve a claim, then the number of claims that are “pending” is 10 x 2 = 20 unresolved claims.
Little’s law
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For each performance measure, define targets
ST30 > 99%
For each objective, identify variable(s) and aggregation method performance measure
Variable: customer served in < 30 min.
Aggregation method: percentageMeasure: ST30 = % of customers
served in < 30 min.
For each process, formulate process performance objectives
Customer should be served always in a timely manner
Define organizational objectives and KPIs (Balanced Scorecard)
Improve customer loyalty (returning customers) by 10%
Identifying process performance measures
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Financial Customer
Internal business process
Innovation & learning
Balanced scorecard
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Cost
measuresQuality & time
measures
Quality & time
measures
Technology
leadership,
Staff satisfaction
Supply Chain Operations Reference Model (SCOR)
• Performance measures for supply chain management processes
American Productivity and Quality Council (APQC)
• Performance measures and benchmarks for processes in the Process Classification Framework (PCF)
IT Infrastructure Library (ITIL)
• Performance measures for IT service management processes
Process performance reference models
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Performance Dashboards
Process Mining
Database
Enterprise
System
Event log
Event stream
Business Process Monitoring
ProcessDashboards
Operationaldashboards
(runtime)
Tactical dashboards(historical)
Strategic dashboards(historical)
Types of process dashboards
Operational process dashboards
•Aimed at process workers & operational managers
•Emphasis on monitoring (detect-and-respond), e.g.:- Work-in-progress
- Problematic cases – e.g. overdue/at-risk cases
- Resource load
•Aimed at process owners / managers
•Emphasis on analysis and management• E.g. detecting bottlenecks
•Typical process performance indicators• Cycle times
• Error rates
• Resource utilization
Tactical dashboards
Tactical Performance Dashboard @ Australian Insurer
•Aimed at executives & managers
•Emphasis on linking process performance to strategic objectives
Strategic dashboards
Manage
Unplanned
Outages
Manage
Emergencies &
Disasters
Manage Work
Programming &
Resourcing
Manage
Procurement
Customer
Satisfaction0.5 0.55 - 0.2
Customer
Complaint0.6 - - 0.5
Customer
Feedback0.4 - - 0.8
Connection Less
Than Agreed Time0.3 0.6 0.7 -
Key Performance
Process
Strategic Performance Dashboard @ Australian Utilities Provider
Process: Manage Emergencies & Disasters
Process: Manage Procurement
Process: Manage Unplanned Outages
Overall Process Performance
Financial PeopleCustomer
Excellence
Operational
Excellence
Risk
Management
Health
& Safety
Customer
Satisfaction
Customer
Complaint
Customer
Rating (%)
Customer
Loyalty Index
Average Time
Spent on Plan
1st Layer
Key Result
Area
2nd Layer
Key Performance
Satisfied
Customer Index
Market
Share (%)
3rd & 4th Layer
Process Performance
Measures
0.65
0.6 0.7
0.7 0.6 0.8
0.4 0.8
0.5 0.4 0.5 0.8 0.4
0.54
0.58
0.67
Designing Process Performance Dashboard
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Identify a user or users and define a clear question or set of questions that users will answer with this question
Identify the type of dashboard elements based on the insights required to answer the question
Identify a type of visualization (e.g. type of chart) for the element
Determine x-axis (independent variable): longitudinal time), cross-sectional (attribute)
Determine y-axis (dependent variable): performance measure or attribute and the aggregation function
Process performance dashboard elements
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Indicator: Card displaying a process performance measure
• Example: cycle time (average, median, max, min, etc.)
Trend chart: A longitudinal performance chart that traces a performance measure over time
• Chart displaying the number of active cases (WIP) over time
Performance distribution chart: A histogram displaying the performance of the process across different components
• Histogram of total effort (total processing time) spent per resource
Cross-sectional chart: A chart that traces a performance measure across different segments (e.g. business units, countries, activity, etc.)
• Chart displaying the cycle time of the process per country
Detailed Tables
• Tables providing detailed performance statistics per case, per activity, etc.
Operational-Tactical – Business Activity Monitoring (BAM)
• Axway AMPLIFY
• VITRIA Operational Process Intelligence
• Oracle BAM
• SAP Operational Process Intelligence (OPI)
• webMethods Optimize for Process
Tactical
• Business Intelligence (BI) tools: PowerBI, Qlikview, Tableau…
• Process Mining (dashboard modules): Apromore, Celonis, QPR, …
Strategic Level – Balanced Scorecard tools
• BSC Designer Online, Quickscore, Sisense, etc.
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Tools for performance dashboarding
Performance dashboards in Apromore
Quick Demo
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